Monday

Jun 30, 2014 at 5:32 PM

Body Central, the Jacksonville-based chain of women's clothing stores, has taken out an emergency loan and is removing itself from the Nasdaq stock listing.

The company acknowledged Monday that under Nasdaq rules, it was required to get stockholder approval before borrowing $18 million. But, the company said in a news released, "In order to preserve the financial viability of the Company, it was necessary to consummate the transaction before stockholder approval could be obtained."

Because of that, the company will voluntarily delist itself from Nasdaq. It was still trading Monday, however. After opening at 82 cents a share, it fell to 72 cents with the news before closing at 89 cents.

The company founded in 1972 has struggled in recent years.

As of June 27, the company operated 275 stores - seven fewer than it had in March - in 28 states under the Body Central and Body Shop banners,

In March, after reporting sales had dropped 18.3 percent in the fourth quarter of 2013, the company announced that it was postponing its planned move from its current headquarters on Powers Avenue to a much larger facility at Imeson International Industrial Park on the Northside.

That week the company's stock fell from $2.05 to 91 cents.

At the time, Chief Executive Office Brian Woolf said the chain had been too skewed toward teens and needed to refocus on women in their mid-20s to mid-30s.

In May, it released its first-quarter earnings: Net revenues decreased 26.6 percent to $59.7 million compared to the first quarter of 2013. Store sales decreased 24.8 percent, but direct sales increased 41.7 percent.

Net loss for the quarter was $9.3 million.

The company then announced that Woolf's salary would be reduced from $750,000 to $600,000 and that Thomas Stolz, chief operation officer, chief financial officer and treasurer, would have his reduced from $475,000 to $380,000.

Roger Bull: (904) 359-4296

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